Ambuja Cements continues performing well on sales and revenue growth, accelerates its growth plans
Apr 29, 2022
Mumbai (Maharashtra) [India], April 29 (ANI/BusinessWire India): According to Neeraj Akhoury, CEO, Holcim India and Managing Director and Chief Executive Officer, Ambuja Cements Limited, "We are focused to be the most innovative and sustainable company by offering advanced environment-friendly construction products to our customers. The India Strategy 2025 for both Ambuja and ACC is under execution. Under this plan, we will realise industry-leading position in cost excellence, asset optimization and sustainability.
Our new Marwar cement plant is now operating at full capacity. Our additional cement capacity expansions of around 9 million tons at Ropar and Bhatapara are on track. Our plan is to grow Cement capacity to 100 million tons per annum.
Ambuja has recorded robust top line growth of 8 per cent. Our market focused strategies are driving this performance. Ambuja Kawach, our green cement, has demonstrated growth of 66 per cent year on year. Ambuja Cements has been ranked as India's Most Trusted Cement Brand in 2022 by TRA Research.
The January to March 2022 quarter was impacted by rising fuel prices due to which EBITDA during the quarter was lower by 19 per cent. This was partly mitigated by boosting efficiencies under our flagship 'I CAN' program. Supported by the Master Supply Agreement with ACC we further reduced our logistics costs.
The ongoing and new investments in the Waste Heat Recovery Systems approved by the Board will support our efficiency initiatives and lead to the delivery of our sustainability goals."
Quarter 1, 2022
Net sales growth of 8 per cent and volume growth of 3 per cent
Recently commissioned Marwar cement plant at Rajasthan, operating at full scale
Board approval for Waste Heat Recovery project at Ambujanagar and Maratha. Total capacity to reach ~87 MW
EBITDA at Rs 790 Crore, impacted by significant rise in fuel prices, partly mitigated by strong delivery of efficiency programs under 'I CAN'
Standalone unaudited financial results for the quarter ended 31st March 2022
Financial performance for the quarter ended 31st March 2022
Net Sales during the quarter increased to Rs 3,855 Crore compared to Rs 3,579 Crore in the corresponding quarter of the previous year, resulting in a growth of 8 per cent
On the cost, freight cost per ton declined 5 per cent year on year supported by logistics efficiencies. Despite this gain, total operating cost per ton rose by 15 per cent, due to increased fuel costs
EBITDA during the quarter is Rs 790 Crore and Operating EBIT is Rs 639 Crore
Consolidated unaudited financial results for the quarter ended 31st March 2022
Performance of ACC Limited, a Material Subsidiary
Net Sales during the quarter increased by 3 per cent to Rs 4,322 Crore compared to Rs 4,213 Crore last year
Profit after tax at Rs 396 Crore
Efficiency project 'Parvat' helped deliver 1 per cent lower per ton Freight and Forwarding cost despite fuel inflation. Strict cost control measures enabled reduction in fixed cost vs previous year
COVID-19 update
Health and Safety continues to remain our key priority. Strict adherence to government guidelines and Covid appropriate behaviour are ensured across our locations. We continue to monitor the situation and take proactive steps to build a safe and healthy working environment.
Outlook
We remain very optimistic on cement demand growth with key indicators such as GST collection, power demand and e-invoice point towards a recovery of the domestic economy. Government's focus on infrastructure and housing and the PLI (Production Linked Incentive) scheme for the manufacturing sector will further provide impetus to cement demand growth.
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